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The RRG Blog has a Resources and a Commentary category. Commentary is only visible for registered and logged in users.

Julius de Kempenaer is the creator of Relative Rotation GraphsTM together with Trevor Neil he will write the blog entries for the RRG-free and the RRG-pro blog sections of this site. If you are looking for specific subjects or would like Julius to contribute on a speific subject, at least loosely related to RRG or Relative Strength in general,... please post your question in the forum or send julius a direct message. More

One A In FAANG Just Turned Back towards the Leading Quadrant


The Relative Rotation Graph shows the FAANG stocks against $NDX on a daily basis. The strong move of GOOG is evident and tracks the recent break of resistance.

Out of these five stocks, four are at the right-hand side of the graph, indicating a relative uptrend against the Nasdaq 100 index.

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Spotting A Pair Trade On Relative Rotation Graph Of US Sectors


The above Relative Rotation Graph shows the daily rotation over the past 20-days for the Utilities and Industrials sectors.

I have isolated the tails of these two sectors to be able to show them in more detail and highlight the opposite directions that they started moving in.

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Something that makes me go ...Hmmmmmmm?


The daily RRG for US sectors shows a lot of sectors "hooking" lower and only two sectors that are, still, at a positive RRG-Heading, ie rising on both axes.

The chart above is showing a 5-day tail on every sector. if we look at the lengths and trajectories of these tails a few things catch my attention.

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Materials Sector Rolling over On Both The Weekly And The Daily RRG


The chart above shows the weekly rotation for the Materials sector, XLB, within the universe of US sectors against SPY. After the tail turned upward inside the lagging quadrant, XLB kept up with the performance of SPY and moderately outperformed the market until the sector started to lose relative momentum again in the week of 21 Jan and 28 Jan when the tail started to roll over downward again without having reached the leading quadrant.

This loss of relative momentum, declining Jdk RS-Momentum, is still ongoing and pointing the tail on XLB towards the lagging quadrant again.

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Recent comment in this post
ketan mange
pls see indian market (nifty) and its sector
Friday, 08 March 2019 09:19
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Is This Stock Breaking Out Or Building A Major Top-Formation?


On the weekly Relative Rotation Graph for US sectors, XLI, the Industrials sector is crossing over into the leading quadrant from improving. This indicates further improvement for Industrial stocks compared to other segments of the market.

While zooming in on the RRG for Industrial stocks against XLI I noted the rotation of DOV inside the weakening quadrant.

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Join Me At The Traders EXPO in New York


Here's some shameless self-promotion!

On Monday 11 March I will be doing an RRG presentation at the TradersEXPO in New York and you are invited. For FREE ;)

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Where Is The Volume?


My last article in the RRG blog looks at sector rotation for US sectors and how there are some disconnects between groups of sectors on both the daily and the weekly time frames.

My conclusion from that article was that the current rotational patterns are sending mixed signals which makes it difficult to get a clear picture for the market in general, i.e SPY.

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Two Sectors Are Rolling Over Inside The Leading Quadrant On The Daily RRG


The Relative Rotation Graphs, both daily and weekly, for US sectors are showing big disconnects between sectors.

The image above holds the US sectors and shows daily rotations.

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JP Morgan deteriorates further on Relative Rotation Graph


One of the choices in the drop-down selection on the Relative Rotation Graphs page is the DJ-industrials (Dow 30 Industrials). This RRG shows the rotation of all 30 Dow stocks against the $INDU.

The RRG above shows the daily rotation and highlights the rotation of JP Morgan Chase & Co. (JPM), a heavyweight in the financials sector.

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Watch Out For More Weakness In Financials This Week!


On the daily Relative Rotation Graph for US sectors, the rotation of Financials stands out. The tail is relatively long, indicating that there is good momentum behind this move,

The bad news is that the rotation is taking place inside the weakening quadrant and has almost reached the lagging quadrant.

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The Staples Sector Is Improving, But Which Stocks Deserve Attention?


The Relative Rotation Graph shows the rotation of the stocks in the Consumer Staples sector against XLP, the Consumer Staples sector index.

Keen observers may notice that I have left out COTY and CAG because they are very disconnected and distorting the picture. If you click on the image and open up the live version of this chart they will be there!

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Save This Chart To Keep Track Of The Yield Curve Interaction With The Economic Cycle


The chart that I want to share with you today is part of a (bigger) research project that I am doing with regard to the various phases in economic cycles and their relation to the (shape of) yield curve.

The chart above shows the S&P Index in the main panel. The panel below shows the difference between 10yr and 2yr yields on US treasuries. This 10-2 relationship is generally used to indicate a normal, 10yr > 2yr, or inverted, 10yr < 2yr, shape.

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Breaking Down The Bloomberg Commodity Index Family On RRG


In this article, we are going to take a look at commodities using Relative Rotation Graphs and the Bloomberg commodity index family.

When possible, I prefer to use data-sets that come from the same family and creating a "closed universe." This is a universe where all securities on the RRG together make up the benchmark that is used for comparison.

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Real(ly) Good Real-Estate (XLRE) But It Needs To Break Resistance


The Relative Rotation Graph for US sectors shows a remarkably steady rotation for the Real-Estate sector. This is a daily RRG showing a 15 day tail, or three weeks. Yesterday XLRE crossed over into the leading quadrant and is now the only sector inside the leading quadrant at a solidly positive RRG-Heading.

Continue reading "Real(ly) Good Real-Estate (XLRE) But It Needs To Break Resistance" »

Original author: Julius de Kempenaer
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Defensive Sectors Starting Positive Rotations Again On Daily Relative Rotation Graphs


The Relative Rotation Graph for US sectors is showing a split picture. On the right, we have Utilities, Real-Estate, Consumer Staples and Healthcare. With the exception of Real-Estate maybe, these are generally accepted as "defensive" sectors.

All other sectors (7) are positioned to the left of the benchmark (SPY).

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Water ($DJUSWU) Is The Leading Group Inside The Utilities Sector (XLU)


One of the pages that I often visit on Stockcharts.com is the sector summary. It gives a tabular overview of the price changes that occurred over a certain period (you can choose).

From that page, it is possible to open a Relative Rotation Graph that breaks the sector down into industries. This enables you to look inside the sector at the industry level and see which industries are driving or dragging the performance of the sector.

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SPY Arrived In "Trouble Territory"


After the sharp sell-off in Q4 of last year, the market (SPY) started to recover from its lows near 235. And IMHO it is still a "recovery" before turning down again as opposed to a "turnaround" back up.

This weekly chart above clearly shows that the rhythm of lower highs followed by lower lows is still in play and for a turnaround to become a possibility we need, at the minimum a first higher low, i.e., above 235 or a new high, i.e., above 280, to be put into place. 

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Long Tail And Strong RRG-Heading For IRM


The Relative Rotation Graph above highlights the rotation of IRM (Iron Mountain Inc.) in comparison to the other stocks in the S&P Real-Estate sector (XLRE).

The sector itself is interesting to keep an eye on as it is positioned well inside the leading quadrant but rolling over, at high JdK RS-Ratio levels, on the weekly RRG. But it is inside the lagging quadrant and curling up on the daily RRG. 

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Relative Rotation Graphs And Factor ETFs


It's Friday morning in Amsterdam and I just dropped my daughter off at school. On the way to my office, I usually stop at the local Coffee Company for a cappuccino and reading some, market-related, news, blogs etc.

For some reason, I noticed a lot of talk and articles on factor investing, factor ETFs, factors that drive markets. Pretty much "factors" all over the place. While looking out of the window, yes it was a rainy day, I was thinking about a way to use Relative Rotation Graphs in combination with "factors".

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This DOW stock is pushing to new relative highs and rotates back into the leading quadrant on the Relative Rotation Graph


Visa is showing up, just, inside the leading quadrant on the Relative Rotation Graph vs $INDU above. These images are zoomed in from the RRG holding all the 30 DJ Industrials stocks (benchmark $INDU).

The tail in the chart on the left above shows 30 weeks of rotation and as you can see the week-to-week observations are all close together (the white dots on the tail) causing a relatively short tail compared with other stocks on the plot.

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